The health of the Chinese economy bodes well for the world, says WEF Executive Director-Xinhua

This photo taken on Jan. 11, 2023 shows employees at the Lotus car factory in the Industrial Park of the Wuhan Economic and Technological Development Zone in Wuhan, central China's Hubei Province. (Xinhua/Xiao Yijiu)

The World Economic Forum's executive director highlighted China's positive economic health amid global uncertainties, saying its stability has beneficial effects globally.

By Martina Fuchs

Geneva, Jan. 10 (Xinhua) — In light of the bleak outlook for the global economy in the short term, the health of the Chinese economy means positive spillovers to the rest of the world, the executive director of the World Economic Forum (WEF) said Wednesday.

„If we look at the two-year time frame, 30 percent of people believe we have a catastrophic risk outlook. When it comes to the 10-year time frame, almost two-thirds of people believe that,” said Sadia Zahidi. Xinhua in an online interview.

Ahead of its annual meeting in Davos, Switzerland, the WEF's Global Risks Report 2024 warned that misinformation and misinformation are the biggest short-term risks, while extreme weather and significant change in Earth systems are the biggest long-term concerns.

The report also said that the coming years will be marked by continued economic uncertainty and a growing economic and technological divide.

Asked about China's economic outlook, Zahidi said: „Uncertainty is the key word for most economies around the world, including China. The positive thing is that China is one of the very few major economies in the world that is not struggling with inflation. It is not struggling with very high interest rates at the moment.”

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This photo taken on May 28, 2023 shows China's self-developed large passenger plane C919 preparing for its first commercial flight in Shanghai, east China. The C919 began its first commercial flight from Shanghai to Beijing on May 28, marking its official entry into the civil aviation market. (Xinhua/Ding Ding)

„The actions of the Chinese leadership are starting to work and starting to bear fruit, whether it's focusing more on manufacturing, focusing more on green technologies, making sure there's a renaissance in trade,” he said. .

„China is one of the major economies in the world, so the health of that economy has very positive spillovers to the rest of the world,” he added.

Noting that the WEF has had a decades-long relationship with China, he said: „We hope to do a lot of public-private cooperation in China. We have a lot of cooperation on nature and climate and the financial and monetary system. , and we hope to do a lot more.”

Between January 15-19, the 54th WEF Annual Meeting will be held in the Swiss ski resort of Davos under the theme „Rebuilding Trust”. More than 300 public figures will participate this year, including more than 60 heads of state and government, organizers said.

This photo taken on Nov. 8, 2023 shows the booth of Siemens at the 6th China International Import Expo (CIIE) in Shanghai, east China. (Xinhua/Wang Xiang)

Commenting on this year's theme, Zahidi stressed the „breakdown of trust around the world”.

„We see a divide between the Global North and the Global South. We see concerns about increasing social polarization within societies. At the same time economic crises continue in various countries,” he said.

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A new report from the WEF calls for greater global cooperation and partnerships to tackle the planet's biggest risks.

„It's very important that we build trust in each other again, and that's why we provide a platform to bring different global leaders together. But they also create a positive vision for communities to start trusting their future again.” she said.

„Another important message is that a lot of action is possible at the local level. A lot of action is in the hands of citizens and individuals. It's not just 200 intergovernmental agreements to deal with some of these risks,” she added.

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